Amanzimtoti a good buy-to-let option - Market News, News
Please note that you are using an outdated version of Internet Explorer which is not compatible with some elements of the site. We strongly urge you to update to a newer version for optimal browsing experience.
14 Jan 2013

Amanzimtoti a Good Buy-to-let Option

Property News

Brought to you by Property24

A plan to turn Durban’s former international airport site near Amanzimtoti into a dug-out port and commercial development has stirred up the local property market.

Amanzimtoti has lush gardens, beaches, the warm Indian Ocean, affordable properties and new business opportunities.

Deidre Ronnenbergh of the local Aida franchise says Transnet's R100 billion plans have increased the demand for property as contractors descend on the town.

Upcountry buyers are also relocating their businesses to Amanzimtoti in a quest for a more relaxed, seaside lifestyle.

“This has galvanised the rental market and even though sellers who don't find buyers in a month or two are switching to renting out their properties, shortages are becoming evident."

Another problem for new arrivals, says Ronnenbergh, is that many landlords only offer short rental contracts because they reserve their units in the holiday high season to cash in on higher seasonal rentals.

She says a one bedroom flat that commands a rental of R3 300 a month in the off-season can be let for up to R450 a day in the high season and most landlords get full bookings during holidays.

This three bedroom, two bathroom house has two reception rooms. It has a lounge, spacious living spaces and a private patio. It is on the market for R795 000 - click here to view.

The pressure on rental stock has seen monthly rentals rise in the past few months to start at R2 500 a month for bachelor apartments, R3 300 a month for one bedroom units and R4 500 to R5 000 for two bedroom units.

The high demand for rental units is also spurring new investment by landlords, Ronnebergh says. “They are sourcing older properties in need of renovation and spending some capital to modernise them before releasing them on to the rental market and their capital expenditure is being offset by excellent returns."

Units bought for between R850 000 and R1 million get average rentals of between R8 000 and R9 000 a month.

Prices of properties for sale start at R450 000 for one bedroom flats where two bedroom homes are priced from R650 000. Average three bedrooms, two bathroom family homes sell at around the R1 million mark and luxury properties are selling at prices of R5 million.


Next article

Secure estate homes in Hoedspruit

The Hoedspruit property market is doing well as buyers see potential in the rental market, with properties fetching between R8k and R12k a month.

Read more
Secure estate homes in Hoedspruit
Newsletter
Get the latest property news.
Select your options:
Get the latest news
Share
Google Plus
EmailEmail Print Print
Top Articles
Set on the lower slopes of Devil’s Peak and boasting spectacular views, ...

Port Elizabeth’s historic Central offers an urban lifestyle and secure p...

Following elections, most councillors have been constituted, and focus n...

A private property fund has acquired the well-positioned Rondebosch Vill...

The Women’s Property Network hosted the 2016 SA Women in Property Awards...

Loading

Your browser is out of date!

It looks like you are using an outdated version of Internet Explorer.

If you are using Internet Explorer 8 or higher, please verify that your Internet Explorer compatibility view settings are not enabled.

For the best browsing experience, update to the latest Version of Internet Explorer or try out Google Chrome or Mozilla Firefox.


Please contact our Property24 Support Team for further assistance. Tel. +27 (0)861 111 724